DJ Samba Digital, Inc: 2023 RESULTS - Significant Increase in Revenue and Profitability
Samba Digital, Inc
Samba Digital, Inc: 2023 RESULTS - Significant Increase in Revenue and Profitability
28-Feb-2024 / 19:00 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
2023 RESULTS
Significant Increase in Revenue and Profitability
Revenue: +45%
Net Income: +78%
Lisbon (Portugal) - February 28, 2024 - 6:00 PM: Samba Digital, a global player in sports marketing, presents its 2023
results in line with its forecasts and showing a significant improvement compared to the 2022 fiscal year.
The 2023 financial results, as approved by the Board of Directors of Samba Digital SGPS (Portugal), listed on Euronext
Lisbon (ISIN PTDGL0AM0003, Mnemonic MLSMB), are as follows:
Figures currently being audited in EURM Variation at a constant rate of exchange
31/12/2023 31/12/2022 Variation
Turnover 5.57 3.84 +45% +47%
Operating profit 1.51 .86 +76% +81%
Operating margin 27.1% 22.4% +4.7%.
Net profit 1.18 .66 +78% +85%
Net margin 21.2% 17.3% +3.9%
The variation indicates growth in published data and, at constant exchange rates, the progression in dollars excluding currency variation. The final and audited accounts will be available by May 20, 2024, at the latest.
Increase in Activity Across All Regions In 2023, Samba Digital successfully deployed its offerings globally, perfectly meeting the challenges of digital sports marketing in all regions of the world. The geographical distribution remains roughly the same as in 2022, with slight growth in Francophone Europe. The geographical distribution is as follows:
Francophone
In EURM United Kingdom and the rest of the world United States
Europe
CA 2023 35% 47% 18%
CA 2022 33% 47% 20%
The 2023 fiscal year was notably driven by significant activity with the National Football League and one of its biggest clubs, which won the Super Bowl for the second time, with prestigious new football clubs, and even diversification outside of the sports world but still linked to it, as part of the Paris Olympics. It is noteworthy that Samba Digital made a significant investment effort of USD1M in Artificial Intelligence for its Força "creative services" online offering, which is already bearing fruit since, as of today, the revenue already billed in 2024 amounts to USD321K, thus validating the forecast of USD2M included in the budgeted 2024 revenue of USD10M. It is important to mention that this offering was developed in partnership with Orange Business' Data Science department. Operating income stands at EUR1.51M, up 76% from 2022. Thanks to a 100% subcontracting model and an increase in activity allowing for better absorption of its fixed costs, Samba Digital's operational profitability significantly appreciated in 2023, reaching 27.1% of revenue, an increase of 4.7 points. After accounting for a tax expense of EUR328K, net income stands at EUR1.18M, up 78% from 2022. The net margin remains solid, exceeding 21%.
A solid financial structure
The company is fully self-financed without having to resort to bank debt. However, given the numerous development projects and their impact on working capital needs, the Company obtained a credit line of EUR400K from Santander Bank in 2023, which has been utilized up to EUR273K as of December 31. As of 12/31/2023, the company's consolidated cash holdings amount to EUR906K (including USD292K on the US subsidiary's books), and its client receivables stand at EUR1.3M. Equity has reached EUR25.18M as of 12/31/2023 after incorporating the 2023 net income.
Outlook: A revenue target of EUR10M for 2024 For 2024, Samba Digital will continue its commercial efforts at a sustained pace with particularly dynamic news in the world of sports (Olympic and Paralympic Games in France in the summer of 2024, European Football Championships, etc.). Concurrently, the company will continue its expansion into new regions, particularly in the Middle East and specifically in Saudi Arabia, where it is already involved in projects related to the 2034 Football World Cup. Thanks to its business model favouring recurring subscription-type revenues and the high renewal rate of its client contracts, Samba Digital starts the year with a high level of backlog. The company thus is aiming for a 2024 revenue of EUR10M, representing an organic growth of nearly 70% for the upcoming fiscal year. As previously announced, Samba Digital also confirms its intention to request a transfer to Euronext Growth® Lisbon in the first half of 2024 followed by a dual listing of its shares in Paris. 1based on even exchange of EUR/USD ABOUT SAMBA DIGITAL Founded in 2018 in the United States, Samba Digital supports clubs and players in the sports and eGaming industry in their internationalization strategy, by developing their digital audiences around the world. The company is active on four continents: America (USA and LATAM), Europe, Africa and Asia. Samba Digital works with the biggest clubs and players in English football (Liverpool, Tottenham, Manchester United, Chelsea...), French football (Ligue 1, PSG, OM, OL, AS Monaco...), Italian football (Serie A, Juventus, Napoli...), German football (Bundesliga, Eintracht Frankfurt, Bayern Munich...) and, since 2022, with the Portuguese Primeira Liga. The company is also developing its expertise in many other sports, such as basketball (Orlando Magic in the NBA and FIBA), rugby (World Rugby), golf (Ryder Cup), Formula 1, tennis (Roland-Garros, the US Open, etc.), etc. Based in Portugal, Samba Digital also owns Sports Translate and Sport Influencers, two platforms aimed at the sports industry, with over 300 translators and 5,000 influencers available worldwide. Sports Translate provides content translation and adaptation in 50 languages and dialects and offers video subtitling and dubbing services. Samba Digital is the first sports marketing company in the world to offer these different services with an economic model based on flexibility, without any bank debt and a comfortable cash flow allowing it to self-finance its investments. Samba Digital is listed on Euronext Lisbon PTDGL0AM0003 MLSMB Contacts:
Company
Financial communication
Frédéric FAUSSER
frederic.fausser@sambadigital.com Gilles BROQUELET
gbroquelet@capvalue.fr
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Regulatory filing PDF file File: Samba Digital - PR 2023 preliminary results - 28022024 EN
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Language: English
Company: Samba Digital, Inc
14 NE 1st Avenue
33132 Miami
France
Internet: https://sambadigital.com/
ISIN: PTDGL0AM0003
AMF Category: Inside information / News release on accounts, results
EQS News ID: 1847663
End of Announcement EQS News Service
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1847663 28-Feb-2024 CET/CEST
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February 28, 2024 13:00 ET (18:00 GMT)
